http://demo.x-cart.com/demo/
In categories I enabled to show in Front-End CD-DVD-Video Category including all its subcategories.
I go to Admin -> Catalog -> Products and choose a product. You see "Additional categories" text area. Use Click to select multiple. In my case I select these categories/subcategories:
- CD-DVD-Video
- CD-DVD-Video/CD Audio
- CD-DVD-Video/DVD
- CD-DVD-Video/Video Cassettes
As you can see I am the one who controls in what category a product will go.
You cannot have CD-DVD-Video with only its products without listing its subcategory too.
One category/subcategory could have a
- parent category
- one or more subcategories
- one or more products
Mike's solution is not showing categories/subcategories with no products (this should be part of XC Gold 4.5.6).